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You install a small instrumentation package in your application, and set up an Application Insights resource in the Microsoft Azure portal. The instrumentation monitors your app and sends telemetry data to the portal. (The application can run anywhere – it doesn’t have to be hosted in Azure.)
You can instrument not only the web service application, but also any background components, and the JavaScript in the web pages themselves.

In addition, you can pull in telemetry from the host environments such as performance counters, Azure diagnostics, or Docker logs. You can also set up web tests that periodically send synthetic requests to your web service.
All these telemetry streams are integrated in the Azure portal, where you can apply powerful analytic and search tools to the raw data.

What’s the overhead?

The impact on your app’s performance is very small. Tracking calls are non-blocking, and are batched and sent in a separate thread.

Application Insights is aimed at the development team, to help you understand how your app is performing and how it’s being used. It monitors:

Request rates, response times, and failure rates – Find out which pages are most popular, at what times of day, and where your users are. See which pages perform best. If your response times and failure rates go high when there are more requests, then perhaps you have a resourcing problem.

Application Insights is an extensible Application Performance Management (APM) service for web developers on multiple platforms. Use it to monitor your live web application. It will automatically detect performance anomalies. It includes powerful analytics tools to help you diagnose issues and to understand what users actually do with your app. It’s designed to help you continuously improve performance and usability. It works for apps on a wide variety of platforms including .NET, Node.js and J2EE, hosted on-premises or in the cloud. It integrates with your devOps process, and has connection points to a variety of development tools.